Objectives. Describe how investing contributes to the free enterprise system.Explain how the financial system brings together savers and borrowers.Explain the role of financial intermediaries in the financial system.Identify the trade-offs among liquidity, return, and risk. . Key Terms. investment: the act of redirecting resources from being consumed today so that they may create benefits in the futurefinancial system: the network of structures and mechanisms that allows the transfer of mone31065
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